2024 (1) TMI 932

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....R. RAMESH NAIR Shri Manish Jain, Advocate for the Appellant Shri Anand Kuamar, Superintendent (AR) for the Respondent ORDER RAMESH NAIR The issue involved in the present case is that whether the payment of duty by 100% EOU can be paid from cenvat credit account while debonding the 100% EOU unit. 2.1 Shri Manish Jain, Learned Counsel appearing on behalf of the appellant submits th....

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....liance on the following judgments:- Hindalco Industries Ltd - 2018 (3) TMI 538 - Bombay High Court Thermax Limited - 2019 (31) GSTL 60 (Guj.) Dishman Pharmaceuticals & Chemicals Pvt Ltd - 2016 (332) ELT 242 (Guj.) Flexi Caps and Polymers Pvt Ltd - 2022 (58) GSTL 545 (Tri.- Del). 2.3 He further submits that duty payable on the removal of inputs procured by EOU....

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.... that at the time of de-bonding if there is any short fall of duty payment subsequent to the de-bonding of the unit, the custom/excise department is empowered to issue a show cause notice for which no approval of development commissioner is required for issuance of show cause notice, therefore, this submission of the appellant is not sustainable. 4.1 Regarding the submission of the appellant th....

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....s paid in cash therefore there is no reason to avoid payment of additional custom duty of raw material as a custom duty in cash. 4.3 I am of the view that the cenvat credit can be utilized for payment of excise duty either on the finished goods or on the indigenous inputs. However, in case of imported inputs the additional duty of custom has to be paid in cash and not by debiting cenvat credit ....